Quebec’s Downgrade: Legault Government Accused of “Carelessness”

Quebec’s downgrade, a “mess” that could have serious long-term financial consequences, is the sole responsibility of the Legault government, the opposition parties insisted Tuesday.

The CAQ spent like “sailors on the run” without even improving services to the public, denounced Marc Tanguay’s Liberal Party at a press briefing, as work resumed at the National Assembly.

Despite what the opposition parties say, Standard & Poor’s decision to downgrade Quebec’s credit rating last week had no impact.

This was the point made Tuesday by Premier François Legault and his Finance Minister, Eric Girard. They explained that the financial markets had reacted positively to Quebec’s bond issue that morning.

“There is absolutely no impact,” Girard said in a press scrum. “As for the future, I can’t predict it for you.”

When news of the downgrade broke last Wednesday, the government was announcing $46 million for the third Quebec City-Lévis highway link, and Legault was heading to the Bell Centre to watch a Canadiens game.

This demonstrates the “carelessness” of this CAQ government, which seems to be taking the situation lightly, added Parti Québécois leader Paul St-Pierre Plamondon.

“I think he should have been a little embarrassed Wednesday night, the night his government was downgraded. I would have watched the game on television, turned down the volume, and revised my budget, which isn’t good,” Tanguay said.

For the past week, the opposition parties have been accusing the Legault government of mismanaging public finances, leading to Quebec’s downgrade, a first in 30 years.

Legault responded that he fully accepts responsibility for the choices he made, such as increasing health and education budgets and cutting taxes for the middle class.

A downgrade could lead to an increase in interest rates on the government’s debt.

“They’re trying to tell us that everything is normal and that there’s no problem with what just happened. I’m sorry, it’s serious, and it has consequences for future governments,” protested PQ leader Paul St-Pierre Plamondon on Tuesday.

He expressed concern that the other rating agencies that monitor Quebec would follow S&P’s lead.

“I’m asking the government to stop being negligent and at least plead our case before it’s too late, because all this is going to cost us hundreds of millions,” he added.

Girard indicated that he would hold virtual meetings with the rating agencies as usual in May. According to him, the government’s plan to return to a balanced budget within five years is “credible.”

Bonjour tout le monde,

Mercredi, la firme de notation Standard & Poor’s a abaissé la cote de crédit du Québec. C’est une mauvaise nouvelle, bien entendu. Nous aurions pu prendre d’autres décisions qui auraient évité une décote. Mais on a fait des choix, ancrés dans cinq…

— François Legault (@francoislegault) April 18, 2025

In a long message on social media last Friday, Legault acknowledged that Standard & Poor’s decision to downgrade Quebec’s credit rating was “bad news.”

“If the government is in deficit and a rating agency downgraded us, it’s because we made decisions based on our beliefs,” he maintained, adding that he “fully accepts” his choices.

The last time Quebec suffered a downgrade was in 1995. A lower rating can lead to an increase in interest rates on the government’s debt.

–This report by La Presse Canadienne was translated by CityNews